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FEDERAL RESERVE BANK O F N EW Fiscal Agent o f the United States ° YORK [ £ircula^ NtJ 1 L N o ve m b e r 4,1949 J Public Notice of Offering of $1,000,000,000, or thereabouts, of 91-Day Treasury Bills D a te d N o v e m b e r 10, 1949 M a tu rin g F eb ru a ry 9, 1950 To all Incorporated Banks and Trust Companies in the Second Federal Reserve District and Others Concerned: Following is the text of a notice today made public by the Treasury Department with respect to a new offering of Treas ury bills payable at maturity without interest to be sold on a discount basis under competitive and non-competitive bidding. F O R R E L E A S E , M O R N IN G N E W S P A P E R S , Friday, Novem ber 4, 1949. TREASU RY DEPARTM ENT W ashington The Secretary o f the Treasury, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 91-day Treasury bills, fo r cash and in exchange for Treasury bills maturing N ovem ber 10, 1949, to be issued on a discount basis under competi tive and non-com petitive bidding as hereinafter provided. The bills o f this series w ill be dated Novem ber 10, 1949, and will mature February 9, 1950, when the face amount w ill be payable without interest. They w ill be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000, and $1,000,000 (maturity value). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern Standard Time, M onday, Novem ber 7, 1949. Tenders w ill not be received at the Treasury Department, W ashington. Each tender must be fo r an even multiple of $1,000, and in the case of com petitive tenders the price offered must be expressed on the basis o f 100, with not more than three decimals, e. g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forw arded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. Tenders w ill be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accom panied by payment o f 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. Imm ediately after the closin g hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow ing which public announcement w ill be made by the Secretary o f the Treasury o f the amount and price range of accepted bids. Those submitting tenders w ill be advised o f the acceptance or rejection thereof. The Secretary of the Treasury expressly reserves the right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to these reservations, non-com petitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted in full at the average price (in three decim als) o f accepted competitive bids. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on Novem ber 10, 1949, in cash or other immediately available funds or in a like face amount o f Treasury bills m aturing Novem ber 10, 1949. Cash and exchange tenders w ill receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price o f the new bills. T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, shall not have any exem ption, as such, and loss from the sale or oiher disposition o f Treasury bills shall not have any special treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. The bills shall be subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but shall be exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F or purposes of taxation the amount o f discount at which Treasury bills are originally sold by the United States shall be considered to be interest. U nder Sections 42 and 117 (a )(1 ) o f the Internal Revenue Code, as amended by Section 115 of the Revenue A ct o f 1941, the amount o f discount at which bills issued hereunder are sold shall not be considered to accrue until such bills shall be sold, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordin gly, the ow ner o f Treasury bills (other than life insurance com panies) issued hereunder need include in his income tax return only the difference between the price paid for such bills, whether on original issue or on subsequent purchase, and the amount actually received either upon sale or redemption at maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular N o. 418, as amended, and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f the circular m ay be obtained from any Federal Reserve Bank or Branch. In accordance with the above announcement tenders will be received at the Securities Department of this bank (9th floor, 33 Liberty Street) New Y ork 45, N. Y., or at the Buffalo Branch o f this bank (270 Main Street) Buffalo 5, N. Y., up to two o ’clock p.m., Eastern Standard time, on Monday, November 7, 1949. It is requested that tenders be 'submitted on special form printed on reverse side and returned in special envelope enclosed herewith. Payment for the Treasury bills cannot be made by credit through the W ar Loan Deposit Account. Settlement must be made in cash or other immediately available funds or in maturing Treasury bills. A l l a n S p r o u l , President. (Extract from Treasury Department statement released for publication November 1, 1949, announcing residts after tenders were opened for 91-day Treasury bills dated November 3, 1949 maturing February 2, 1950) T otal applied f o r ........ $1,608,374,000 T otal a c c e p te d ............ $1,000,977,000 (includes $85,472,000 entered on a non-com petitive basis and accepted in full at the average price shown below ) A verage p r i c e . . .. 99.731+ Equivalent rate o f discount approx. 1.063 percent per annum Range o f accepted com petitive b id s : H i g h ....................... 99.746 Equivalent rate o f discount approx. 1.005 percent per annum L o w ......................... 99.729 Equivalent rate o f discount approx. 1.072 percent per annum (65 percent o f the amount bid for at the low price was accepted) Federal Reserve District ------------------------* Boston ............................ New Y o r k ...................... P h ila d e lp h ia .................. Cleveland ...................... R ic h m o n d ...................... Atlanta ........................... C h ic a g o ........................... St. L o u i s ........................ M in n e a p o lis .................. Kansas C i t y .................. D allas ............................ San F r a n c is c o .............. T o t a l ...................... Total Applied for Total Accepted ------------------13,807,000 1,239,491,000 21,087,000 20,427,000 8,755,000 8,036,000 134,502,000 14,600,000 3,975,000 26,182,000 34,010,000 83,502,000 --------------------$1,608,374,000 ’ 13,307,000 706,454,000 9,337,000 20,227,000 8,405,000 8,036,000 120,652,000 13,515,000 3,975,000 25,682,000 29,785,000 41,602,000 --------------------$1,000,977,000 $ $ (o v e r ) IM PORTANT— If it is desired to bid on a competitive basis, fill in rate per 100 and maturity value in paragraph headed “ Competitive Bid” . If it is desired to bid on a non competitive basis, fill in only the maturity value in paragraph headed “ Non-competitive B id” . DO NOT fill in both paragraphs on one form. A separate tender must be used for each bid. N o........................... T E N D E R FOR 91-D A Y T R E A S U R Y BILLS Maturing February 9, 1950. Dated November 10, 1949. Dated a t .................................................... T o F eder al R eserve B a n k o f N e w Y o r k , Fiscal Agent of the United States. ............................................................1949 COMPETITIVE BID NON-COMPETITIVE BID Pursuant to the provisions of Treasury Department Circular No. 418, as amended, and to the provisions of the public notice on November 4, 1949, as issued by the Secretary of the Treasury, the undersigned offers Pursuant to the provisions of Treasury De partment Circular No. 418, as amended, and to the provisions of the public notice on November 4, 1949, as issued by the Secretary of the Treasury, the undersigned offers a non-competitive tender .......................................... * for a total amount of for a total amount of $ ............................................ (N o t to e x ce e d $200,000) (R a te per 100) $ .....................................................(maturity value) of the Treasury bills therein described, or for any less amount that may be awarded, settlement therefor to be made at your bank, on the date stated in the public notice, as follow s: (maturity value) of the Treasury bills therein described, at the average price (in three deci mals) o f accepted competitive bids, settlement therefor to be made at your bank, on the date stated in the public notice, as follows: By surrender of the maturing issue of By surrender of the maturing issue of Treasury b il ls .................. $ ...................................... Treasury b il ls .................. : ....................................... By cash or other immediately available By cash or other immediately available funds ................................ $ ....................................... fu n d s ................................ $ ....................................... The Treasury bills for which tender is hereby made are to be dated November 10, 1949, and are to mature on February 9, 1950. This tender will be inserted in special envelope entitled “ Tender for Treasury bills” . Name o f B id d er.................................................................................................................. (P le a s e prin t) B y ...................... ............................................................. ................................ (O fficia l sign atu re re q u ire d ) (T it le ) Street Address (C ity , T o w n o r V illa g e , P. O. N o., and S tate) If this tender is submitted for the account of a customer, indicate the customer’s name on line below: (N a m e o f C u stom er) (C ity , T o w n o r V illa g e , P . O. N o., and S tate) Use a separate tender for each customer’s bid. IM PO R TA N T INSTRUCTIONS: 1. N o tender for less than $1,000 w ill be considered, and each tender must be for an even multiple of $1,000 (m aturity value). A separate tender must be executed for each bid. 2. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to make the tender, and the signing of the tender by an officer o f the corporation w ill be construed as a rep resentation by him that he has been so authorized. If the tender is made by a partnership, it should be signed by a mem ber o f the firm, w ho should sign in the form “ ..........................................................................................................., a copartnership, by ................................................................................................................. a member o f the firm” . 3. Tenders w ill be received without deposit from incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accom panied by payment of 2 percent o f the face amount of Treasury bills applied for, unless the tenders are accom panied by an express guaranty o f payment by an incorporated bank or trust company. 4. I f the language o f this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. Payment by credit through War Loan Deposit Account will not be permitted. T E N T B —1010-a * Price must be expressed on the basis of 100, with not more than three decimal places. Fractions may not be used. (o v e r )
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